Interested in investing, but don’t know where to find the cash? Take a serious look at your discretionary spending, and you can easily save $10.00 to $20.00 per week just by adjusting your priorities.
One of the easiest ways to cut back on your weekly spending is to record every penny that you spend on a daily basis. Simply carry a small notepad with you, or if you are more tech-oriented, record your spending in an app on your smart phone.
Once you have begun tracking those expenses, you will quickly see where you can cut corners. For example:
How much do you spend on fountain drinks, specialty coffee, or energy drinks? Cutting back just two of these per week will easily put at least $10.00 extra into your investment fund.
Do you regularly eat lunch at a restaurant or fast food establishment? Take your lunch to work once a week and you’ll save anywhere from $5.00 to $10.00, or more, depending on where you normally eat lunch.
Do you regularly buy a certain newspaper or magazine at a newsstand, the grocery counter, etc.? If so, see if you can read the same publication online, either on your computer or your mobile phone, and put the cash into your investment fund.
Do you spend cash or do you use a debit or credit card? As old-fashioned as it may sound, setting aside a certain amount of cash, and spending that instead of swiping your card will make you more aware of your spending, and, consequently, less likely to overspend. You see, debit and credit cards really don’t seem like “real money” to most of us these days, and it is very easy to swipe that card for a couple of dollars here and there, and not really pay attention to the cost of things. The practice of using cash, breaking a $20.00 bill for a $3.00 cup of coffee actually makes you more aware of the cost of that cup of coffee.
If you smoke, do you buy your cigarettes by the pack or by the carton? Purchasing by the carton normally saves you a few dollars, plus, if you aren’t regularly stopping at the convenience store to buy another pack or two of cigarettes, you are less likely to purchase that candy bar, pack of gum, or soft drink that you often add at the last minute. Better yet, smoke 4 cigarettes less per day, and save an average of $1.00 daily just by smoking less. Quit, and you’ll save at least $160.00 per month, assuming you normally smoke one pack per day.
And these are just a few examples! Imagine what you can find in your budget, if you really look. The whole idea is to examine every expense, find little ways to cut corners, and then use those funds to invest in a weekly or monthly basis. And, with the right investment firm, even investing small amounts over time will appreciate nicely, and you will be amazed at the end of the first year how much you were actually able to invest just by cutting back on daily discretionary spending.
